Real estate - Selling and buying in May
Hello -
My wife and I are thinking about moving in May.
On the conservative side, we should clear about 290K from the sale of our current home and the payoff of our existing mortgage.
Our original idea was to use my 401K for the additional funds to pay cash for the new home. BUT - that was when I had 150K in my portfolio. Now it's down to 100K.
The houses we are looking at, that we want, are around 425K.
The options we have are:
A- Buy a cheaper house we don't really want for 390K, and just settle with it but be mortgage free
B- Take out a 5 year ARM , and just pay it off with my 401K when the market improves.
C- Buy a house for 425K, put 390K down, and take a out small loan.
Side notes :
My wife has almost 500K in her retirement accounts, so we would not be using all our retirement nest egg.
I will be 60 when we move, and will collect SS at 62 (around 1400.00 per month)
My wife is 57, so we cannot use her 401K without penalties for another 2.5 years (but we really don't want to use any of hers if we don't have to)
So...any suggestions or ideas???
Thank you much
My wife and I are thinking about moving in May.
On the conservative side, we should clear about 290K from the sale of our current home and the payoff of our existing mortgage.
Our original idea was to use my 401K for the additional funds to pay cash for the new home. BUT - that was when I had 150K in my portfolio. Now it's down to 100K.
The houses we are looking at, that we want, are around 425K.
The options we have are:
A- Buy a cheaper house we don't really want for 390K, and just settle with it but be mortgage free
B- Take out a 5 year ARM , and just pay it off with my 401K when the market improves.
C- Buy a house for 425K, put 390K down, and take a out small loan.
Side notes :
My wife has almost 500K in her retirement accounts, so we would not be using all our retirement nest egg.
I will be 60 when we move, and will collect SS at 62 (around 1400.00 per month)
My wife is 57, so we cannot use her 401K without penalties for another 2.5 years (but we really don't want to use any of hers if we don't have to)
So...any suggestions or ideas???
Thank you much
61-69